PRESS DIGEST - British business - Sept 27
The Guardian
ENTERTAINMENT RIGHTS WARNS ON PROFITS
Entertainment Rights ERT.L saw its shares halve on Friday after it announced annual profits would be more than 25 percent below City expectations. The owner of children's characters, including Basil Brush and Postman Pat, revealed annual profits before financial charges would be down seven million pounds this year, and 6.5 million pounds in 2010. The group recently renegotiated its American DVD distribution deal, which resulted in the return of significant rights, but reduced its royalty payments.
INDIAN FIRM STARTS BID BATTLE FOR AXON GROUP
HCL Technologies (HCLT.BO) made a 441.1 million pound all-cash offer for Axon Group AXO.L on Friday. It trumped a bid from Infosys Technologies (INFY.BO), its larger rival, which the board of Axon recommended last month. HCL is offering 650 pence a share compared with Infosys' 600 pence. Axon, which is based in Surrey, has 2,000 staff and advises firms using software from German developer SAP.
INSOLVENCY FIRM REAPS REWARDS FROM THE CASUALTIES
Begbies Traynor (BEG.L), the insolvency specialist, said on Friday the number of companies forced into liquidation would grow strongly over the next couple of years. The company said several sectors had been severely affected by the downturn in the UK's economy. Chief executive Ric Traynor said: "I'm afraid I think there is a lot of pain to be felt. It will be busier in 2009, and 2010 will be busy as well."
The Independent
BARCLAYCARD FINED FOR PERSISTENT SILENT CALLS
According to Ofcom, Barclaycard has been hit with a 50,000 pound fine for "the most serious and persistent" silent calls to customers, leaving them confused and frustrated. The fine is the maximum the communications industry regulator could inflict. Silent calls usually happen when the automatic dialling systems at call centres connect more calls than staff can cope with. Since 2006, legislation states that silent calls must not account for more than three percent of all calls, and customers should hear an explanation message.
WISEMAN TO RAISE DAIRY PRODUCT PRICES
Robert Wiseman Dairies (RWD.L) is set to increase prices across the board due to the soaring cost of utility and oil-related bills. The group said it was confident of pushing through the price rises and would achieve a "significant improvement" in second-half performance. The company's shares increased 0.75 pence to reach 328.25 pence. Panmure Gordon analysts believe the outlook for the second-half looked significantly stronger, despite increased operating costs.
The Times
HARDY AMIES FACES ADMINISTRATION.
Hardy Amies HRDS.L, the most famous name in British couture, was on the brink of collapse on Friday. The AIM-listed company, founded by a dashing war hero, suspended dealing in its shares after it failed to secure additional funding from Arev Brands, the Icelandic investment group. In a statement, the group said: "The directors of Hardy Amies were confident that the necessary funds would be forthcoming until late yesterday afternoon, when its major shareholder informed the company that it was unable to provide the requisite finance."
TOP BANKERS TO GO AS HSBC MAKES 1,100 REDUNDANT
HSBC (HSBA.L) said on Friday it is due to make 1,100 investment banking staff redundant, including 500 in Britain. The largest bank in Britain insisted the reductions were necessary because of difficult conditions and the poor economic outlook. The job cuts are thought to include highly paid investment bankers, as well as back office and administrative staff in London. The US and Europe took the rest of the cuts.
The Daily Telegraph
HERMES OFFERS RETAILERS MONTHLY RENTS
Hermes has moved to allow existing tenants the chance to pay rent monthly rather than quarterly, in exchange for compensation. The British Retail Consortium welcomed the decision by one the UK's largest landlords on Friday, and urged the rest of the property industry to follow. The British Property Federation, however, refuted claims that Hermes had broken ranks with its offer and said that the terms being offered reflected those being sought by the property sector in exchange for changing their system.
HOMEWARE SALES PLUNGE HITS JOHN LEWIS FIGURES
John Lewis' [JLP.UL] sales plunged by 5.6 percent last week, due to fears over the financial markets and "a glimpse" of summer in the weather. Sales of "home" products at the department store retailer dropped by 14 percent, electricals by 2.4 percent and fashion by 0.4 percent. The chief UK and European economist at Global Insight, Howard Archer, said: "This could be a sign that the turmoil in the financial sector has significantly hit consumer confidence and spending."
Prepared for Reuters by Durrants
